Question

Quantity Total Cost
(Dollars) Variable Cost
(Dollars)
0 $1,000 $0
100 1,360 360
200 1,560 560
300 1,960 960
400 2,760 1,760
500 4,000 3,000
600 5,800 4,800

Table 11-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.


Refer to Table 11-1. If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss

Answer 1

Both production runs of 300 and 400 produce the same profit and the maximized profit. Take it from here.

Answer 2

440